Errata for An Introduction to Modern Econometrics Using Stata

The errata for An Introduction to Modern Econometrics Using Stata are
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Chapter 2, p. 25, first paragraph, second sentence

For generate or replace, missing values are propagated;
any function of missing data produces missing data.

For generate or replace, missing values are propagated.
Most Stata functions of missing data return missing values.
Exceptions include sum(), min(), and max(); see
[D] functions for details.

The return item r(sum) is set equal to the total number of duplicate
observations found (here, 2), so the identification of duplicates implies
that you need to correct the dataset. The duplicates command could
also be applied to numeric variables.

The return item r(unique_value) is set equal to the number of unique observations found. If that value falls short of the number of observations, r(N), duplicates exist. The identification of duplicates in this supposedly unique identifier implies that the dataset must be altered before its further use. The duplicates command could also be applied to numeric variables to detect the same condition.

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Chapter 4, p. 73, equation (4.5)

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Chapter 4, p. 77, unnumbered equation

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Chapter 4, p. 79, first full paragraph after equation, first line

... a model, R2 cannot fall and will probably rise,

... a model, R2 cannot fall and will probably rise,

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Chapter 4, p. 79, first full paragraph after equation, fifth line

zero. Algebraically, ... (N - 1)/(N - k) < 1 for any X

zero. Algebraically, ... (N - 1)/(N - k) > 1 for any X

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Chapter 4, p. 85, last paragraph, fourth sentence

A rule of thumb states that there is evidence of collinearity if the mean VIF is greater than unity or if the largest VIF is greater than 10.

A rule of thumb states that there is evidence of collinearity if the largest VIF is greater than 10.

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Chapter 4, p. 96, last paragraph, first sentence

We cannot reject the hypothesis that the coefficients on ldist
and stratio are equal at the 5% level, whereas we can reject
the test that the ratio of the lnox and stratio
coefficients equals 10 rejected at the 1% level.

Whereas we cannot reject the hypothesis that the coefficients on
ldist and stratio are equal at the 5% level, we can
reject the hypothesis that the ratio of the lnox and
stratio coefficients equals 10 at the 1% level.

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Chapter 4, p. 104, second to last unnumbered equation

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Chapter 4, p. 104, last unnumbered equation

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Chapter 4, p. 105, top of page

Plugging in our consistent estimators yields the bounds

Substituting for
and using the variance of predicted value presented in the text
yields a prediction interval for the predicted value

Plugging in our consistent estimators yields the bounds

Substituting for
and using the variance of predicted value presented in the text
yields a prediction interval for the predicted value
.